Answer:
The periodic interest rate of Erika's account is 1.6%.
Step-by-step explanation:
It is given that annual interest rate of Erika's savings account is 6.4%
This simple interest rate is calculated quarterly.
To calculate the periodic interest rate of Erika's Account, you only have to divide the annual interest rate (6.4%) by [tex]\frac{1}{4}[/tex] year.
So, you have
( 6.4% ) ( [tex]\frac{1}{4}[/tex] )
= [tex]\frac{(6.4)}{4}[/tex]
= 1.6%
The periodic interest rate of Erika's account is 1.6%.
